Crisis at Aberdeen firm Wood deepens as chief financial officer resigns over ‘mistake’

Aberdeen energy firm Wood’s chief financial officer has resigned over an “incorrect description of his professional qualifications”.

The board has accepted Arvind Balan’s decision with immediate effect.

The engineering firm has seen its share price plunge across the past week after revealing a “difficult” and “disappointing” financial year.

The company’s share price sat at 65.4p per share upon last Thursday’s closing but now sits at just 24.5p per share – dropping by 64.3% in the past five days.

Mr Balan said he regrets his mistake and revealed the decision he made was based on “minimising distraction”.

He said: “Regrettably, I made an honest oversight with respect to the description of my professional qualification as a chartered accountant instead of a certified practicing accountant.

“I continue to believe in the long-term potential of the company and its people.

“My decision is based on minimising distraction at this very pivotal time with our investors and lenders.”

Wood appointed Mr Balan to the company’s board as chief financial officer and executive director on April 15 2024.

He arrived from the same role at the civil aerospace business of Rolls-Royce and had worked in numerous financial roles for the oil firm Shell.

Mr Balan succeeded David Kemp, whose intention to retire was announced in August 2023.

Wood said an announcement on Mr Balan’s successor as well as interim cover will be made in due course.

Chief executive Ken Gilmartin said: “On behalf of the board and the company, I would like to wish Arvind all the best in his future endeavours”.

What next for Wood Group after chief financial officer resigns?

Mr Balan’s resignation is more bad news for Wood, which had expected a “very strong” trading performance in the final quarter of 2024, but it failed to materialise.

This led to the decision to cancel its annual executive and employee bonus for the year.

The troubled firm employs 35,000 people and suffered a series of setbacks in 2024, with 22 Aberdeen jobs cut.

It then saw its share price collapse in August when Sidara walked away from a proposed takeover deal.

More bad news followed when announcing its half-year results which showed a £756 million loss.

In November, it saw the collapse of its market value by £500 million when it announced an “urgent” independent review of its books.